Many bulk handling terminals have been built throughout the United States, some of which operate with excess capacity. For several terminal owners who have traditionally competed for the same business, we worked with management to analyze port consolidation options and improve terminal operating/financial performance.

The project team gathered detailed information on the historical operating and financial performance of each terminal. A detailed computer model was developed to simulate terminal operations under different assumptions and conditions.

The team identified and evaluated a variety of port options, including a "base case" and three port consolidation scenarios using different operating and financial assumptions. Strengths, weaknesses and financial implications of each scenario were reviewed in detail.

We brought together two clients, who have traditionally been competitors, to develop a "win-win" partnership. The clients worked together to develop key information, evaluate different options, and determine the most attractive port consolidation scenarios based on key criteria.

The clients worked to develop a strategic alliance, which could significantly change the historical relationship of the two firms. The two companies are currently evaluating their port consolidation plans as well as the specific benefits and responsibilities of each party.